Why CarMax Stock Was Down Big Today
Shares of CarMax (NYSE: KMX) were down almost 24% as of 2:11 p.m. ET on Thursday after releasing disappointing revenue and earnings performance. Revenue of $8.1 billion was up 2% over the year-ago quarter but was well below the consensus analyst estimate of $8.5 billion. Earnings per share were $0.79, down from $1.72 a year ago.
It's been a weak year for auto sales, which, along with the negative sentiment across the stock market, has sent CarMax shares down 49% year to date.
Higher average selling prices for used and wholesale vehicles, which increased 9.6% and 17%, respectively, were just barely enough to offset the decline in unit sales. It was a similar story from the previous quarter.
Source Fool.com
